Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1887-01-12


Educational purr oses. 1888 4 Oh
Agricultural purposes, 1887 t6
State College, 4,05u 90
Penal AID retormatory Institutions 24,lO1 90
Deaf, dumb and blind, l6,673 80
Maine General Ho-pilal. 5000 90
Bath Military and Naval A YUM, 1900 90
Protection ana propagation OF fish and
game-sea and shore fisheries, lo.205 g.
Insane State benetclaries and state
pauper.. Sc $40 81
Mill AIRY purposes, 1881 80
Pensions, 23eO5 6s
Railroad and telegraph tax paid to
towns cities 2l.sse SIS
Indian tribes, 1920 IS
County taxes collected in 1885 paid to
counties, 1859 Is
Miscellaneous and current expenses of
State government, including salaries
Of all state officers, judges and county
attorneys. 1850 20
Total expen ditures during the year 1880, oa SIS
Cash balance December 81, 1885, sls,s5l IS
Sl.563,s67 30
SINKING FUND.
The sinking Fund at the cl ,se OF the
year amounted at par value to t2,1l0, 300 81
At the close OF the year 1885, ii
amounted TO 1880, 27S Al
Showing an increase during the past
year Of sI5oilz le
The market value of the sinking iund at
the present time. exclusive of prem
ium on State of Maine securities there
in Is sass $50 81
ioIAL ANEI lNDEB VI THE oTAl Il.
After deductnX resources, including
Sinking Fund at market value, the
total net Indebtedness of the State
amounts to s2.s65, 1865 20
NOMINAL BONDED DEBT OF THE STATE
The nominal bonded debt of the State is as
follows:
Bonds due June |. 1859, $3.50 600
October i. 1889. 2,S27 900
Total, s5,l57 900
TOTAL NET BONDED DEBT OF THE STATE
The total net bonded debt of the State
after deducting the Sinking Fund at
its present maj ket value Is $2,799, $40 43
REDUCTION OF THE PUBLIC DEBT.
The public debt Of the State has been de-
creased during the year, as follows:
BY payment of bonds due in 1885. e. ooo %
M
" ncre ise of the sinking Fund (par
value) I5o.1i2 IS
Total reduction during year 1885. 5000, il2 10
TEMPORARY LOAN NOT REQUIRED.
The Treasurer was authorized by the last
legislature TO procure for the year 1856 a
temporary loan of jhr-e hundred thousand
dollars, or 80 much thereof as might be re-
CURED. Although the receipts of the office
were derived from reduced rate of taxation
the Treasurer found it unnecessary to avail
himself of the authority granted by the re-
solve, all demands upon the treasury having
been met from the current receipts OF the
Office.
ESTIMATED RECEIPTS AND EXPENDITURES
FOR THE YEAR 1887.
The Treasurer's estimates of the receipts
and expenditures for the year 1887 are based
upon the present law for taxation, and arr as
follows:
Receipts $i,502 1853 So
Expenditures, |, 1870 90
which would leave a balance in favor
Of the State of $685. 20
This balance would be reduced bv any
appropriations, not at present authorized by
Law, which may be made by the legislature
The Pubic DEBr SUGGESTIONS.
We quote in full "Accordiug to existing
law, | have included, in the estimate of sp-
preparations to be made by the incoming It q
islature. the sum of $50, 80 for the sink
ing fund and have also included in the inter
est to be paid on the public debt the amount
due on the 81 l6l 800 90 of State bonds held
in the sinking fund which interest for the
year 1887 will amount to the sum of $50 800
90. 1t will remain for the wisdom of the
legislature to determine what steps shall be
taken for the relunding of that part of the
which will remain after the sinking fund
shall be applied to the reduction of the debt
In my judgment the sinking fund has been
carried as far as the Obligation of the act of
1868 under which it was established, requires
| The rapid rise of all the securities in which
the fund could be invested, has, to a consid-
cradle extent, reduced the profit which
expected from its creation and accretion, and
yet it has served the most useful end to which
it was originally dedicated in exslting the
credit of the State to the first rank.
If the legislature shall now make pro-
vision for refundng the amount of debt
which will remain in 1889 which will be less
than three millions in all it might be wise TO
omit further taxation in anv form on account
of the debt. The bonds can be refunded at
a much lower rate of interest and the burden
upon the tax payers materially lightened.
The immediate effect of this course will be
large reduction of taxation to be followed by
another reduction in the near future. In re-
funding the debt at low rate of interest,
the bonds would perhaps never rise to high
premium, so that a sinking fund established
for their ultimate redemption could be most
safely. and in the end perhaps most profit.
ably, invested in the bonds themselves
The ultimate advantage and utility of
Sinking Fund are, however, somewhat ques-
toned BY large class of skilled tinanciers,
the principal objection being the impractical
biity OF 80 conducting the operations Of the
fund as to gain a sufficient profit to justify its
establishment with its attendant risk of loss.
1t must, however be admitted that the Sink
ing Fund of 1868, though somewhat disap-
pointing calculations, has proved highly adj
vantageous to the credit of the State, and to
the liquidation of our debt
If the establishment of another Sinking
Fund should not meet the views of the Legis-
lature it might be found advantageous TO fund
the debt so that it should be made payable in
equal parts for forty consecutive years, which
estimating the debt in 1889 to be SO, 800 900,
would be $4,000 each year.
In this way the interest for the first year,
at three per cent. would be Ss4, 900, second
year $4,000, third year $40, 800, fourth year
1900, and so on in the same proportion,
thus reducing the interest year by year, and
rapidly decreasing the financial burden.
If it were desirable to reduce the annual
payment the debt might be divided into
smaller yearly installments for longer
period Wise legislation at this time will
leave but slight burden in the future upon
the tax payers from the public debt
1t is not within my official province to
recommend specific measures, but | venture
to suggest that it may prove highly advan-